Washington, DC – January 31, 2011 – (RealEstateRama) — The Conference of State Bank Supervisors (CSBS) is pleased to announce the commencement of the federal registration of mortgage loan originators with the Nationwide Mortgage Licensing System and Registry (NMLS or the System) in accordance with the Final Rules published by the federal banking agencies and the Farm Credit Administration.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Farm Credit Administration (the federal agencies) published a final rule on July 28, 2010 announcing the use of NMLS to fulfill the federal registration of mortgage loan originators requirement under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). In a press release today, the Agencies announced that the NMLS Federal Registry opened today, beginning the 180 day transition period for financial institutions covered by the Final Rules to register individuals that meet the definition of mortgage loan originator.
NMLS was developed and launched by state regulators through CSBS and the American Association of Residential Mortgage Regulators to serve as the system of record for mortgage licensing in all states and territories in the United States. Coupled with the rigorous licensing requirements imposed by the SAFE Act, which include criminal background checks, credit checks, pre-licensure education and testing requirements, NMLS has greatly enhanced and standardized residential mortgage supervision, all while increasing protections for consumers of residential mortgages.
CSBS entered into a contract with the federal agencies to modify NMLS to meet the federal registration requirements of the SAFE Act and the agencies’ Final Rule. This begins the completion of the SAFE Act mandate that all mortgage loan originators will be registered by the federal agencies or licensed by the states through NMLS and assigned an NMLS unique identification number
CSBS provides information about registration and training for registrants—including a series of web-based and in-person training sessions—on the NMLS Resource Center website at http://mortgage.nationwidelicensingsystem.org.
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The Conference of State Bank Supervisors (CSBS) is the nationwide organization for state bank regulation, representing the bank regulators of the 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. State authorities supervise approximately 6,000 state?chartered financial institutions. Further, the majority of state banking departments also oversee mortgage providers and other financial service providers. CSBS is also responsible for improving the quality of state bank supervision by providing performance evaluation and accreditation programs for the banking departments, as well as supervisory education and training programs for state personnel.
The Nationwide Mortgage Licensing System & Registry is owned and operated by State Regulatory Registry LLC. CSBS in cooperation with the American Association of Residential Mortgage Regulators (AARMR) established the State Regulatory Registry LLC (SRR) on September 29, 2006. A limited-liability company, SRR is to develop and operate nationwide systems for state regulators in the financial services industry. Such systems are intended to enhance state’s ability to protect consumers; improve supervision and enforcement of licensed entities; and streamline licensing and other processes for state agencies and the industry through the use of modern technology and centralizing redundant state agency operations.
NMLS is a web-based system that allows state-licensed mortgage lenders, mortgage brokers, and loan officers to apply for, amend, update or renew a license online for all states using a single set of uniform applications. NMLS began operation on January 2, 2008. Further, passage of the SAFE Mortgage Licensing Act of 2008 requires all mortgage loan originators (MLOs) to be registered or state-licensed through NMLS. MLOs employed by insured depository institutions and subsidiaries are to be registered, and all other MLOs are to be licensed by state mortgage regulators. Federal depository regulators have indicated that MLOs could begin registering on NMLS in January 2011.